Smart Fleet Management Market Outlook - 2027
The global smart fleet management market was valued at $38,245.6 million in 2019, and is projected to reach $98,656.5 million by 2027, registering a CAGR of 15.8%. Asia-Pacific was the highest revenue contributor, with a CAGR of 17.7%. Smart fleet management is an integration of fleet management technologies utilized to manage, maintain, and attain the optimum efficient operations of the fleet. It enables the digital technology application for maintenance and fuel management along with driver safety, telematics, tracking, and smart surveillance. In recent years, use of smart fleet management is rising at a considerable rate as it offers critical alerts, real-time alerts, driver behavior, anti-theft notifications, and safety alerts. Moreover, use of smart fleet management enhances safety, ensures compliance, and reduces costs. Smart fleet operators track the target transportation medium in real-time to reduce idle period and transportation costs, thereby increasing the operational efficiency of fleet management. The purpose of this is to provide effective fleet tracking, real-time monitoring, a dedicated remote server for fleet data, and security features in a single system.
Factors, such as integration of real-time fleet monitoring systems in vehicles, increase in use of cloud-based technology for smart fleet management solutions, and enhanced vehicle monitoring & fuel management, are expected to drive the growth of the global smart fleet management market. However, price concerns of fleet owners and cyber security concerns are expected to restrain the growth of the market during the forecast period. On the contrary, better driver and vehicle safety, enhancement of business decisions for fleet owners, development of intelligent transportation system, and increase in demand from developing countries are anticipated to offer remunerative opportunities for the expansion of the market in the near future.
The global smart fleet management market is segmented on the basis of mode of transportation, application, connectivity, operation, and region. Based on mode of transportation, the global smart fleet management market has been categorized into roadways, marine, airways, and railways. Based on application, the market has been divided into tracking, ADAS, optimization, fuel cards, and automatic vehicle identification. Depending on connectivity, it is fragmented into short range and long range. By operation, the market is bifurcated into private and commercial. Region wise, the global smart fleet management market has been studied across North America, Europe, Asia-Pacific, and LAMEA.
By Mode Of Transportation
Roadways Segment is projected as the most lucrative segment
The key players operating in the global smart fleet management market are Cisco Systems, Inc., Continental AG, DENSO CORPORATION, Globecomm (Speedcast International Limited.), IBM, Samsung Electronics Co. Ltd., Tech Mahindra Limited, Robert Bosch GmbH, Siemens, and Sierra Wireless.
Integration of real-time fleet monitoring systems in vehicles
Fleet operators can track their vehicles in real-time and check if drivers are following the suggested path or if there are diversions. For such fleet management, cloud-based solutions, such as AI, IoT, and big data, are used to collect primary data. For instance, Techwave Consulting Inc. uses sensors that can be embedded into vehicles to monitor high-value goods as they connect to the cloud and transmit the data in real-time. Furthermore, activities that are crucial in smart fleet management include vehicle & driver tracking, asset management, two-way communication, driver safety & time management, rescheduling the delivery task, and others. Moreover, introduction of innovative products and advantages of using smart fleet management services, such as quick access & response, wide-area coverage, and cost reduction, help vendors to increase their productivity and efficiency, thereby escalating the demand for smart fleet management services.
By Application
Optimization is projected as the most lucrative segments
Increase in use of cloud-based technology for smart fleet management solutions
With increase in demand for connectivity and fleet management solutions, smart devices and applications have become the go-to tools for fleet operators. Tracking assets, driver monitoring, fleet optimization, and other related issues are addressed by cloud management solutions. Furthermore, cloud enables the backup and recovery of data and applications on a secondary storage or infrastructure. In addition, many organizations are deploying different cloud models to overcome the drawbacks of traditional fleet management solutions. For instance, apart from tracking Softweb’s cloud-based solution powered by big data analytics, AI, IoT, and other emerging technologies, smart fleet management-based solutions analyze information of fleet, such as route planning, fuel analytics, and driving patterns, to improve productivity and save fuel. Moreover, AI and machine learning capabilities facilitate autonomous dispatching & routing and empower fleet managers to predict vehicle health and driving habits based on the vehicle’s utilization along with lower maintenance requirements and cost-effectiveness. All these factors significantly contribute to the growth of the market.
By Connectivity
Long Range is projected as the most lucrative segments
Better driver and vehicle safety
Real-time monitoring, geo-fencing, advanced driver assistance systems (ADAS), and diagnostic features are incorporated in railways, marine transport, and automotive due to increase in demand for fleet safety and security in transportation of goods and passengers. According to experts, fleet management is expected to grow rapidly in developing nations. Asia-Pacific has witnessed strong adoption of fleet management solutions, such as installation of global positioning system (GPS) in commercial vehicles, due to regulatory mandates. Tracking and follow-up of fleet and driver are the major tasks of a fleet manager. Additionally, accidents have increased at a considerable rate, which has become a crucial matter to be handled by the fleet owners. Moreover, safety and security of both the driver & vehicle have always been crucial from the perspective of consumers as well as auto manufacturers. In case of accidents, these smart fleet management operated vehicles can send an SOS message along with the coordinates of the driver’s location. In case of theft, owners can track their vehicles instantly using a smartphone app developed for this purpose. Therefore, increase in need for safety and security is expected to boost the growth of the smart fleet management market.
By Operation
Commercial is projected as the most lucrative segments
Price concerns of fleet owners
High cost of fleet management systems and other activities majorly affect the return on investment (ROI) of local fleet management businesses as they can barely afford it. As per the statistics given by Expert Market, installation cost for a fleet management system can reach up to $100 for advanced tier system. The additional costs incurred while providing connectivity in the vehicle may act as a restraint for the smart fleet management market. Providing connectivity solution in the vehicle externally incurs additional expenses to the consumers in the form of hardware, connectivity solutions, and telecom service charges. These additional costs for consumers may have a significant impact on the smart fleet management market. In addition, cost of labor, connectivity, and other activities are anticipated to hinder the growth of the local businesses.
COVID-19 impact analysis
The COVID-19 crisis is creating uncertainty in the market by slowing down the supply chains, hampering business growth, and increasing panic among the customer segments. Fleet operators are expected to focus on the working capital management and there are very less chances for heavy investment in advanced technology. However, there are most probable chances of sales momentum for smart fleet management technology, owing to its operational feasibility to attain safety measure along with cost-effectiveness of operations. Market participants of smart fleet management are following certain approaches to manage the fleet operations by slashed fleet budgets, extended equipment lifecycles, decreased staff sizes, and reduced salaries in the short term to overcome the financial downturn. Attributed to the financial downturn, majority of the end users of smart fleet management are inclining toward commercial fleet management despite installing and managing the private fleet. The uncertain demand scenario in the COVID-19 pandemic for the end users and high capital expenditure are expected to spur the inclination toward commercial fleet management. Commercial fleet management enables effective working capital management along with no requirement for additional workforce to manage the fleet operations.
By Region
Asia Pacific would exhibit the highest CAGR of 14.4% during 2020-2027.
Key Benefits For Stakeholders
- This study presents the analytical depiction of the global smart fleet management market analysis along with the current trends and future estimations to depict imminent investment pockets.
- The overall smart fleet management market opportunity is determined by understanding profitable trends to gain a stronger foothold.
- The report presents information related to key drivers, restraints, and opportunities of the global smart fleet management market with a detailed impact analysis.
- The current market is quantitatively analyzed from 2019 to 2027 to benchmark the financial competency.
- Porter’s five forces analysis illustrates the potency of the buyers and suppliers in the industry.
Smart Fleet Management Market Report Highlights
| Aspects | Details |
 By Mode Of Transport |
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 By Application |
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 By Connectivity |
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 By Operation |
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 By Region |
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 Key Market Players | Robert Bosch GmbH, Siemens, Cisco Systems, Inc, Samsung Electronics Co. Ltd. (Harman International Industries, Inc.), Tech Mahindra Limited, Globecomm Systems Inc. (Speedcast International Limited), DENSO CORPORATION, Continental AG, International Business Machines Corporation (IBM), Sierra Wireless |
Analyst Review
Increase in R&D, rise in innovation, and advanced technologies are being incorporated into smart fleet management to improve the operational efficiency, thereby leading to promising results. The adoption of smart fleet management technology-based software is on a rise due to the development of advanced safety and security solutions. The developing and developed economies are focusing on the deployment of such technologies to enhance the transportation network and its infrastructure. In addition, the market is expected to witness a steady growth during the forecast period due to implementation of stringent government regulations toward public safety and development of transportation infrastructure in developing countries. However, COVID-19 health crisis has a negative impact on the overall market, owing to the weak financial performance of the end users as they are expected to focus on primary operations and tasks. The recovery of the market is quite fast as digital technologies are advancing in the time of such health crisis. The expected time to recovery of the market will start from the third quarter of the 2021, and is expected to gain momentum in 2022.
Integration of real-time fleet monitoring systems in vehicles, increase in use of cloud-based technology for smart fleet management solutions, and enhanced vehicle monitoring and fuel management are expected to drive the global smart fleet management market. However, price concerns of fleet owners and cyber security concerns are the factors that are expected to restrain the growth of the market during the forecast period. Moreover, better driver and vehicle safety, enhancement of business decisions for fleet owners, development of intelligent transportation system, and increase in demand from developing countries are expected to supplement the global smart fleet management market, thereby providing a better opportunity for the growth of the market in the near future.
The global smart fleet management market is segmented on the basis of mode of transportation, application, connectivity, operation, and region. Based on mode of transportation, the global smart fleet management market has been categorized into roadways, marine, airways, and railways. Based on application, the market has been categorized into tracking, ADAS, optimization, fuel cards, and automatic vehicle identification. Depending on connectivity, it is fragmented into short range and long range. By operation, the market is bifurcated into private and commercial. Region-wise, the global smart fleet management market has been studied across North America, Europe, Asia-Pacific, and LAMEA.
The global Smart fleet management market was valued at $38.2 billion in 2019, and is projected to reach $98.66 billion by 2027, registering a CAGR of 15.8% from 2020 to 2027.
COVID-19 helath crisis has direct impact on the global Smart fleet management market as fleet operators are experiencing weak fincial perofrmnce owing to commute restrictions during the lockdown
The report sample for global Smart fleet management market report can be obtained on demand from the website.
Agreements, partnerships, product developments, and acquistion are the top most competitive developments which are adopted by the leading market players in the global market
Logistics and transportation service fleet owners, Private company's fleet to commute goods and people etc. are the major players in the global Smart fleet management market.
The company profiles of the top ten players of the market can be obtained from the company profile section mentioned in the report. This section includes analysis of top ten player’s operating in the industry along with their last three year revenue, segmental revenue, product offerings, key strategies adopted, and geographical revenue generated
Based on the Smart fleet management market analysis, Asia-Pacific accounts to be highest revenue contributor in 2019 and expected to see a lucrative growth provides more business opportunities during the forecast period
By operation, Commerical is expacted to gain traction over the forecast period as well as domainate the market share in the global Smart fleet management market
U.S., Germany, Japan, has wirnessed as a key matured markets growing in the global Smart fleet management market
The key players operating in the global Smart fleet management market are Cisco Systems, Inc., Continental AG, DENSO CORPORATION, Globecomm (Speedcast International Limited), IBM, Samsung Electronics Co. Ltd., Tech Mahindra Limited, Robert Bosch GmbH, Siemens, and Sierra Wireless.
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